HomeMy WebLinkAboutConfirming Tax Abatement - Ullery Development, LLC Lots 100 through 106 Ireland Woods Subdivision Section 2 Part 1 (5 Year Residential Real Property)RESOLUTION
3535 -05
Passed by the Common Council of the City of South Bend, Indiana
November 28, 05
20_.
Attest:
Presented by me to the Mayor of the City of South Bend, Indiana
November 29, 05
20
City Clerk
President of Common Council
Approved and signed by me November 29. 20 05 .
City Clerk
0
RESOLUTION NO.
3 5 35 -6g-
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY
KNOWN AS
LOTS NUMBERED 100 THROUGH 106, Ireland Woods Subdivision,
Section Two, Part One
AS RESIDENTIALLY DISTRESSED AREAS FOR PURPOSES OF A
FIVE (5) YEAR RESIDENTIAL REAL PROPERTY
TAX ABATEMENT FOR
Ullery Development, LLC
WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a
Declaratory Resolution designating certain areas within the City as Residentially
Distressed Areas for the purpose of tax abatement consideration; and
WHEREAS, a Declaratory Resolution designated the area commonly known as Lots 100
through 106, Ireland Woods Subdivision, Section Two, Part One, South Bend, Indiana,
and which is more particularly described as follows:
Street Address:
Legal Description:
Kev Number:
1809 Overlook Ct.
Lot 100 Ireland Woods Subdivision
23 -1040- 223202
1870 Overlook Ct.
Lot 101 Ireland Woods Subdivision
23- 1040 - 223203
1825 Overlook Ct.
Lot 102 Ireland Woods Subdivision
23- 1040 - 223204
1833 Overlook Ct.
Lot 103 Ireland Woods Subdivision
23- 1040 - 223205
1841 Overlook Ct.
Lot 104 Ireland Woods Subdivision
23- 1040 - 223206
1849 Overlook Ct.
Lot 105 Ireland Woods Subdivision
23 -1040- 223207
1857 Overlook Ct.
Lot 106 Ireland Woods Subdivision
23- 1040 - 223208
be designated as a Residentially Distressed Area under the provisions of Indiana Code 6-
1.1 -12.1 et se q., and South Bend Municipal Code Sections 2 -76 et se q., and;
WHEREAS, notice of the adoption of a Declaratory Resolution and the public hearing
before the Council has been published pursuant to Indiana Code 6 -1.1- 12.1 -2.5; and
WHEREAS, the Council held a public hearing for the purposes of hearing all
remonstrances and objections from interested persons; and
WHEREAS, the Council has determined that the qualifications for a residentially
distressed area have been met.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South
Bend, Indiana, as follows:
SECTION I. The Common Council hereby determines and finds that the petition for real
property tax abatement and the Statement of Benefits form meet the requirements of
Indiana Code 6 -1.1 -12.1 et sea., for tax abatement.
SECTION II. The Common Council hereby determines and finds that the area meets one
of the following conditions as formally established in Ordinance no. 8845 -97, which was
passed on December 8, 1997:
A. The area is comprised of parcels that are either unimproved or contain only one
(1) or two (2) family dwellings designed for up to four (4) families, including accessory
buildings for those dwellings; or
B. Any dwellings in the area are not permanently occupied and are:
i. the subject of an order issued under IC 36 -7 -9; or
ii. evidencing significant building deficiencies; or
C. Parcels of property in the area:
i. have been sold and not redeemed under IC 6- 1.1 -24 and IC 6 -1.1-
25; or
ii. are owned by a unit of local government; or
D. A significant number of dwelling units within the area are not permanently
occupied or a significant number of parcels in the area are vacant land; or
E. A significant number of dwelling units within the area are:
i. the subject of an order issued under IC 36 -7 -9; or
ii, evidencing significant building deficiencies; or
F. The area has experienced a net loss in the number of dwelling units, as
documented by census information, local building and demolition permits, or certificates
of occupancy, or the areas are owned by Indiana or the United States; or
G. The area (plus any areas previously designated under this subsection) will not
exceed ten percent (10 %) of the total area within the Council's jurisdiction.
SECTION III. The Common Council also hereby determines and finds the following:
A. That the description of the proposed redevelopment meets the applicable
standards for such development.
B. That the estimate of the value of the redevelopment is reasonable for projects of
this nature;
C. That the other benefits about which information was requested are benefits that
can be reasonably expected to result from the proposed described redevelopment; and
D. That the totality of benefits is sufficient to justify the requested deduction, all of
which satisfy the requireme nts of Indiana Code 6 -1.1- 12.1 -3.
E. The deduction will not be allowed unless the dwelling is rehabilitated to meet
local code standards for habitability.
F. The deduction will not be allowed unless the dwelling rehabilitation is completed
within five (5) calendar years from the date of the adoption of this Resolution by the
Common Council.
SECTION IV. The Common Council hereby confirms its Declaratory Resolution
designating the area described herein as a Residentially Distressed Area for the purposes
of tax abatement. Such designation is for Real property tax abatement only and is limited
to five (5) calendar years from the date of adoption of the Declaratory Resolution by the
Common Council.
SECTION V. The Common Council hereby determines that the property owner is
qualified for and is granted Real property tax deduction for a period of five (5) years, and
further determines that the petition complies with Chapter 2, Article 6, of the Municipal
Code of the City of South Bend and Indiana Code 6 -1.1 -12.1 gt seq.
SECTION VI. This Resolution shall be in full force and effect from and after its
adoption by the Common Council and approval by the Mayor.
PRESENTED I1 —L'" -'—
NOT APPROVED
ADOPTED
r
Member of the Common CoUncil
filed k's Office
OCT 2 4 2005
.�...� vnnROE
5 YEAR 6 of Oct 2005
Ullery Development, LLC
South Bend Centre Township Residential Real Property Tax Abatement Schedule*
Estimated Project Cost:
$250.000.00
Total Taxes Tax Abated ** Tax Paid * **
Assessed Value:
STRUCTURE (assume 85% of project cost): 212,500.00 200,000.00 200,000.00
LAND (assume $10,000): 10.000.00 N/A N/A
Gross Assessed Value: 222,500.00 200,000.00 200,000.00
Less Mortgage Exemption: (3,000.00) (3,000.00) (3,000.00)
Less Standard Homeowners Deduction: (35,000.00) (35,000.00) (35,000.00)
Base Assessed Value: $184,500.00 $162,000.00 $162,000.00
Base Assessed Value: $184,500.00 $162,000.00 $162,000.00
Less Maximum Abatement Deduction: N/A N/A ($74,880.00)
Less Non - Abated Amount: N/A (87,120.00) N/A
Plus Land Assessed Value: N/A N/A 10,000.00
Net Assessed Value: $184,500.00 $74,880.00 $97,120.00
Property Taxes:
Assume constant tax rate of: 4.5748% 4.5748% 4.5748%
Gross Tax (tax rate x net assessed value): $8,440.51 $3,425.61 $4,443.05
Less SRTC (21.6532 %): (1,827.64) (741.75) (962.06)
Less Homestead Credit (24.4250 %): (1,615.19) (655.53) (850.23)
Net Tax: $4,997.68 $2,028.33 $2,630.76
Net Assessed Total
Year Value Taxes Due Tax Abated Tax Paid
1 $184,500.00 $4,997.68 $2,028.33 $2,630.76
2 184,500.00 4,997.68 2,028.33 2,630.76
3 184,500.00 4,997.68 2,028.33 2,630.76
4 184,500.00 4,997.68 2,028.33 2,630.76
5 184,500.00 4,997.68 2,028.33 2,630.76
5 year totals: $24,988.40 $10,141.65 $13,153.80
*This schedule is for estimation purposes only and assumes constant tax rates.
The true tax values will ultimately be determined by the actual
assessed valuation and the then current tax rates.
* *Tax Abated is capped at $74,600 of assessed value of structures only
and does not include land assessed value.
** *Tax Paid is calculated using the difference between actual assessed value
of structure and maximum abated portion of $74,600 and adding
back the land assessed value.
1200 COUNTY -QTY BUILDING
227 W. JEFFERSON BOULEVARD
So rrH BEND, INDIANA 46601 -1830
October 24, 2005
PHONE 574 /235 -9371
FAx 574/235 -9021
TDD 574/ 235 -5567
CITY OF SOUrH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY & ECONOMIC DEVELOPMENT
SHARON T. KENDALL
EXECUTIVE DIRECTOR
Council Member Ann Puzzello, Chairperson
Community & Economic Development Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Residential Real Property Tax Abatement Petition for:
Ullery Development, LLC
Lots numbered 100 through 106, Ireland Woods Subdivision, Section 2, Part 1
Dear Council Member Puzzello:
Please find attached the Department of Community & Economic Development's report on a residential
real property tax abatement petition for Ullery Development, LLC for development of seven (7) lots for
single family housing in a new subdivision. Also attached is a copy of the petition, Statement of
Benefits form and supporting information.
The report contains the department's findings relative to the above petition. The petitioner proposes to
develop a 1.6 acre subdivision with seven (7) lots. This application is for the first phase consisting of
seven (7) lots. The development project meets the qualifications for a five (5) year real property tax
abatement. The petitioner will be available to meet with the Committee on Monday, October 24, 2005.
Should you or any of the other Council members have any questions concerning the report or need
additional information, please feel free to call me at 235 -5835.
Sincerely,
� 011-1
Kathy Hahn
Credit Analyst
Attachments
c: South Bend Common Council Members
Mayor Stephen Luecke
Sharon Kendall
Don Inks
Bob Mathia
Filed In Clerk's Office
EE 2005
CITY CL�BK, S0. BEND, M.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL RE PROGRAM
PAMELA C. METER DONALD E. INKS MANAGEMENT
574/235 -9660 574/235 -9371 ELIZABETH LEONARD
PAX: 5741235 -9697 574/235 -9371
1200 CgUNTY -Cm BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601 -1830
PHONE 574 /235 -9371
FAR 574/235 -9021
TDD 574/ 235 -5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY & ECONOMIC DEVELOPMENT
SHARON T. KENDALL
EXECUTIVE DIRECTOR
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: KATHY HAHN
SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR:
Ullery Development, LLC
Lots numbered 100 through 106, Ireland Woods Subdivision, Section Two, Part
One
DATE: October 24, 2005
On October 24, 2005, a petition for residential real property tax abatement consideration for
seven (7) lots between 4044 Sampson and 4104 Sampson was filed with the City Clerk by Ullery
Development, LLC. Pursuant to Chapter 2, Article 6, Section 2 -77 of the Municipal Code of the City
of South Bend, this petition was referred to the Department of Community and Economic
Development for purposes of investigation and preparation of a report determining whether the area
qualifies as a Residentially Distressed Area pursuant to I.C.6 -1.1 -12.1 and whether all zoning
requirements have been met.
The Department of Community and Economic Development has reviewed the petition (a copy of
which is attached), investigated the area and makes the following report.
PROJECT SUMMARY
This project will develop seven (7) lots on 1.6 acres of land between 4044 Sampson and 4104
Sampson. The homes will be constructed by Ullery Development, LLC. The average cost of homes
within this development is expected to be $250,000 with a total value of $1,750,000.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235 -9660 574/235 -9371 ELIZABETH LEONARD
FAX: 574/235 -9697 574/235 -9371